Singapore could be heading for a recession after it reported a big drop in economic activity in the second quarter!
Because of the US-China trade war, Singapore has slashed its forecast for 2019 GDP growth to between 0% – 1%. This is the weakest since 2009!
Leading Asia Economist Sian Fenner of Oxford Economist even forecast Singapore might head towards a technical recession as early as Q3!
With almost all countries in the last few months busy slashing interest rates to save their economies, a worldwide recession seems a great possibility.
Despite Lee Hsien Loong’s and Heng Swee Keat’s claims of grandiose visions, it is clear that the new Singapore economy looks very much like the old one of the last twenty years. There has been no productivity transformation. The only thing that has changed is that the external environment, which provided a huge tail-wind and allowed the PAP to falsely claim credit for a bogus economic miracle fuelled by cheap foreign labour, is now working in reverse. The only question is if Singaporeans will wise up to this fact in time for the next election.